American households face an average 7.6% jump in winter heating costs, reaching about $976, according to the National Energy Assistance Directors Association. The increase comes from higher electricity and natural gas prices and forecasts for a colder season, adding to already elevated grocery, health care, and utility expenses.
Electric and Gas Costs Climb
Electric heat users—about 56 million households—could see bills surge 10.2% to roughly $1,205, with southern states bracing for spikes of more than 21%. Natural gas customers, about 60 million households, are projected to pay 8.4% more, around $693, with Midwesterners facing hikes of up to 16.4%. Over 100 utilities have raised or proposed rate increases, driven partly by growing demand from AI data centers and grid upgrades.
Oil and Propane Offer Relief
Families relying on heating oil or propane may see some relief. Heating oil costs are expected to fall 4% to about $1,455, while propane could drop 5% to around $1,250.
Limited Federal Assistance
Despite rising costs, federal funding for the Low-Income Home Energy Assistance Program (LIHEAP) remains flat at about $4 million for a third year. States are scaling back outreach as demand climbs, leaving many households—especially in places like Philadelphia and Delaware—waiting in long lines for help.
A New Normal
Since 2021, electricity and natural gas prices have risen 31% and 27% respectively, and experts warn that higher heating bills are here to stay. “Customers should be prepared for this being a new normal,” said Mark Wolfe, the association’s executive director.
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